A number of banks are introducing smart technology to tighten security and make customer transactions safer.
They have started to apply enhanced authentication methods for online transactions since the beginning of this month to comply with the central bank’s regulations on improving security for customers.
It means standard text messaging will be replaced with a new system that can send passwords to devices even if the recipient has no coverage.
The Bank for Investment and Development of Vietnam (BIDV) said from Monday it implemented Smart OTP (one-time password) to authenticate online transactions for both individual and corporate clients.
The aim is to strengthen security for customers and comply with the State Bank of Vietnam’s regulations on application of security measure to e-payment and bank card payment, the bank said.
Smart OTP will be obligatory for all domestic and international money transfer transactions made by corporate clients through BIDV Business Online services.
For individual customers, every transaction of more than VND100 million (US$4,292) each or total value of VND100 million per day through BIDV Online and BIDV SmartBanking services are also required to be authenticated by Smart OTP.
Yesterday, Vietcombank stopped using authentication through text messaging and started using passwords provided through its smart system for corporate clients’ online transactions.
Vietnam Prosperity Bank made a similar move, requiring corporate customers to use OTP received through VPBank Smart OTP instead of passwords got from mobile phones or emails.
A similar obligation is also applied for money transfer with value of more than VND100 million per day made by individual customers.
These new rules took effect on Monday.
In April this year, Techcombank also replaced SMS OTP and Token OTP by the Smart OTP system.
An advanced OTP software programme will be installed on a cell phone or tablet registered with the bank and will generate the OTP together with a transaction code. It works even if your device has no signal.
The security level of smart OTP is ranked among the highest security solutions, satisfying security requirements of online and high-value financial transactions.
To enhance security, some commercial banks have initially adopted biometric identification authentication.
